(Link:
https://www.ceiops.eu/fileadmin/tx_dam/files/pressreleases/2nd-2010-Financial-Stability-Report.pdf
). Some of the major findings are:
• According to our assessment, most insurers have solvency margins that
allow for additional shock absorption capacity. However, underwriting
performance in the insurance industry (life, in particular) will be
challenged, if the current low yield environment is to continue.
• The reinsurance sector suffered severe insured losses from natural
catastrophes in the first half of 2010, but losses in the second half of
2010 were below average. Reinsurers are generally well capitalised. Given
the current low reinsurance rates there could be a focus on M&A
activities.
• The pension sector has been less affected by the financial turmoil
given the long-term nature of liabilities. For Defined Benefit schemes
capital/contributions from sponsors had to be increased in some countries,
whereas in others funding conditions were strengthened. Coverage ratios
were not directly affected, where fixed discount rates are used. For
Defined Contribution schemes the impact of the financial turmoil was
greatest for members approaching retirement or for schemes heavily
invested in equities.
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Tel: +49 (0) 69 95 11 19 20
Fax: +49 (0) 69 95 11 19 19
secretariat@ceiops.eu (Link: secretariat@ceiops.eu )
